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The National Bank of Ukraine cancels its specific requirements and limitations on foreign economic agreements providing for importing goods into Ukraine

As of 23 November 2017, the National Bank of Ukraine (the "NBU") cancels its specific requirements and limitations imposed by the Regulation No. 124 dated 23 November 2015 on foreign economic agreements providing for importing goods into Ukraine on a prepayment basis and

which amount exceeds USD 5,000,000 (or equivalent in another currency), or

the amount of payments in aggregate thereunder exceeds USD 5,000,000 (or equivalent in another currency) per year, or

payments in aggregate under several foreign economic agreements entered into with one and the same foreign entity and a Ukrainian importer exceed USD 5,000,000 (or equivalent in another currency) per year.

Accordingly, from now on, such agreements do not need to provide for letters of credit (confirmed by a first rate bank) as method of settlements between a Ukrainian entity – importer and a foreign entity – supplier. In the NBU opinion, the foregoing changes should significantly facilitate foreign trade without having any implications for the Ukrainian foreign currency market.

We believe such changes should also be welcomed by both foreign entities and their Ukrainian counterparties since this should reduce financial and administrative pressure in connection with goods importing transactions.